Calculating EOQ, annual holding costs and ordering costs

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding cost for this item to be $ 25 per unit. The cost to place and process an order from the supplier is $ 75. The company operates 300 days per year and the lead time to receive an order from the supplier is 8 working days.

a) Find the economic order quantity.
b) Find the annual holding costs.
c) Find the annual ordering costs.
d) What is the reorder point?

Solution Preview

(a) Find the economic order quantity.
Annual Demand=D=15000 units
Annual Holding cost=Ch=25 dollar
Order Cost=Co=75 dollar
EOQ = (2*D*Co/Ch)^0.5 ...

Solution Summary

Solution describes the steps to calculate EOQ, annual holding costs, annual ordering costs and reorder point.

12.5
William Beville's computer training school, in Richmond stocks workbooks with the following characteristics:
Demand D=19500 units/year
Ordering cost S=$25/order
Holding cost H=$4/unit/year
a- Calculate the EOQ for the workbooks.
b- What are the annualholdingcosts for the workbooks?
c- What are the annualordering c

Annual demand is 4000 units the cost is $90, the inventory carrying cost is 10% of each unit. The average ordering cost is $25. Demand per week is 80
What is the EOQ? What is the ROP?
What is the average inventory, what is the annualholding cost?
How many orders per year would be placed, what is the annualordering cos

Please use the attached excel worksheet to answer the problem.
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:
Demand D = 19, 500 units/year
Ordering cost S = $25/order
Holding cost H = $4/unit/year
a) Calculate the EOQ for the workbooks.
b) What are the

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Southeastern Bell stocks a certain switch box at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annualholdingcosts for this item to be $25 per unit. The cost to place and process an order from the supplier is $75. The company operate

Computer training schools, stock workbooks with the following characteristics:
Demand D = 19,500 units/year
Ordering cost S = $25/order
Holding cost H = $4/unit/year
a) Calculate the EOQ for the workbooks?
b) What are the annualholdingcosts for the workbooks?
c) What are the annualorderingcosts?

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